This article is from the Australian Property Journal archive
DEMAND for regional bulky goods tenancies has bucked the weak retail sector, according to CBRE, which has negotiated several deals across regional New South Wales.
CBRE retail bulky goods senior negotiator Shane Cook said demand has come predominantly from local independents, and company backed national retailers.
The agency has completed on eight recent deals totalling circa 9,459 sqm across regional NSW.
“Demand for regional bulky goods retail space can be attributed to a number of factors including; a prolonged period of minimal drought in the state, the strong rally of the Australian dollar and the revival of some regional centres.
“In contrast, low vacancy and limited new stock has resulted in little tenant movement or new store openings in metropolitan Sydney,” he added.
Among the recent regional deals, Loot Homewares has taken up 322 sqm on a five year term within the West Gosford Hometown centre at 356 Mann Rd centre while Beds R Us has committed to 822 sqm in the same centre on a five year term.
Loot Homewares and Beds R Us join a range of well known existing tenants with the centre including BCF, Petbarn and Beacon Lighting. Cook negotiated both deals on behalf of Centuria Property Funds.
Further north, Beds R Us has joined the strong mix of local and national retailers at the Hunter Supa Centre in Rutherford also owned by Centuria Property Funds, including Pet Barn, Fantastic Furniture, Betta Electrical and Plush. Beds R Us committed to 1,038 sqm on a five year lease.
In addition, national health club Genesis Fitness has taken up 1,580sqm within the Supa Centa on a seven year lease.
Cook added that the benefits of having a gym concept in a bulky goods centre allowed landlords to diversify their tenancy mix and increase foot traffic.
Other recent regional NSW bulky goods deals include Pet Barn taking up 1,164 sqm in Shellharbour and Pillowtalk recently taking handover for 1,800 sqm of space within Tamworth Homespace.
Bing Lee has also opened a number of stores in regional locations such as Bathurst, Taree and Tamworth adding emphasis to this current trend.
Property Review
